Lieff, Cabraser, Heimann & Bernstein, LLP Announces Class Action Lawsuits Against A-Power Energy Generation Systems, Ltd.

The law firm of Lieff, Cabraser, Heimann & Bernstein, LLP is investigating potential illegal conduct as alleged in class action lawsuits brought on behalf of all purchasers of the securities of A-Power Energy Generation Systems, Ltd. (“A-Power” or the “Company”) (Nasdaq: APWR) between March 31, 2008 and June 27, 2011, inclusive (the “Class Period”).

If you purchased A-Power securities during the Class Period, you may move the Court for appointment as lead plaintiff by no later than August 31, 2011.  A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff.  You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.

A-Power shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should visit Lieff Cabraser's website at http://www.lieffcabraser.com/securities-investor-fraud/case/486/a-power-energy-generation-systems or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.

Background on the A-Power Securities Class Litigation 

The actions are brought against A-Power and certain of its officers and directors for violations of the Securities Exchange Act of 1934.  A-Power, headquartered in Shenyang, Liaoning Province, China, is engaged in providing distributed power generation systems and micro power grids for industrial companies primarily in China.  

The complaints allege that, during the Class Period, defendants violated the federal securities laws by issuing materially false and misleading statements concerning A-Power’s business and financial performance.  Specifically, the complaints allege that defendants failed to disclose (1) that A-Power improperly accounted for its related-party transactions such that its financial statements were not prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”), (2) that A-Power’s revenues and income were misstated in violation of GAAP, and (3) that the Company lacked adequate internal and financial controls. 

On June 17, 2011, A-Power disclosed that one of its independent directors had resigned due to his concerns that the Company did not “necessarily . . . share his views on process and best practices.”  On the same day, Seeking Alpha published an article stating, among other things, that A-Power had a history of internal weaknesses over financial controls, which led to an adverse opinion from A-Power’s independent auditor, and that the Company reported significantly lower revenues and profit to the authorities in China than it reported in its filings with the SEC. 

On June 27, 2011, A-Power issued a press release announcing that MSCM LLP, the Company’s auditor, had resigned, as a result of the Company’s failure to retain a qualified independent forensic accounting firm to evaluate "certain business transactions that MSCM stated was necessary for MSCM to complete its audit of the Company’s financial statements for the year ended December 31, 2010 on a timely basis.”  Moreover, the Company revealed that it would not be able to timely file its Form 20-F for the fiscal year ending December 31, 2010, due in part to MSCM’s resignation.  On this news, after the market closed, Nasdaq halted trading of A-Power stock at $1.67 per share.

Lieff, Cabraser, Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility. 

Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation.   In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last eight consecutive years.

For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.

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